BillerudKorsnäs has entered into a merger agreement to acquire Verso Corporation, a leading producer of coated papers in North America. The acquisition of Verso is fully in line with BillerudKorsnäs’ strategy to drive profitable growth in paperboard, and the ambition to expand into North America. BillerudKorsnäs aims to build one of the most cost-efficient and sustainable paperboard platforms in North America by converting several of Verso’s assets into paperboard machines while maintaining its position as quality and cost leader in specialty and coated woodfree paper. The transaction is expected to close in the second quarter of 2022.
“The combination of BillerudKorsnäs’ expertise in high-quality virgin fiber packaging materials and Verso’s attractive assets creates an excellent platform for long-term profitable growth. We will obtain cost-effective production of coated virgin fiber material in the Midwestern United States. We also plan to sequentially transform part of the business into paperboard production while continuing to serve the U.S. customers. Our investments will create new US-based jobs in a growing market and accelerate the transition from plastic-based packaging materials to renewable sources,” said Christoph Michalski, President and CEO of BillerudKorsnäs.
Verso is headquartered in Miamisburg, Ohio, and have two paper mills in Michigan, a roll to sheet converting facility in Wisconsin (paper production idled), and two distribution centers in Sauk Village, Illinois and Bedford, Pennsylvania. Verso’s product portfolio includes graphic paper, specialty paper, packaging paper and market pulp. The production facilities are strategically located within close proximity to major customers, and the annual production capacity totals around 1.1 million tons of paper.
